China’s Trade Surplus Isn’t a Currency Story — It’s a Labor Issue

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China has just reported a staggering $1 trillion trade surplus, the largest in history. Many Western economists argue that the explanation lies in an undervalued Chinese currency. But this program takes a different view. The real driver of China’s surplus isn’t the RMB — it’s labor. From suppressed wages and extreme working hours to strict capital controls that keep wealth locked inside the system, China’s economic model extracts value from its own people while undercutting global manufacturing. This episode explains where the trillion dollars really came from, who paid the price, and why Beijing has every incentive to keep the system unchanged.

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